Healthy Growth

2003 Gains In Life Science Sector Bucked Economic Trend In State

June 03, 2004|By STACY WONG; Courant Staff Writer

Spending in Connecticut's life science sector grew by 5 percent in 2003, boosting employment and salaries during a year when the state lost thousands of jobs in other sectors, according to an annual industry survey to be released today.

Results of the economic survey by Connecticut United for Research Excellence, or CURE, show that spending reached nearly $3.9 billion last year among the state's pharmaceutical and biotechnology companies and its two largest research universities. Another 3 percent in growth is expected in 2004.

Industry experts and economists said the growth comes as good news to the state because bioscience jobs pay well -- $53,100 is the average starting salary -- and the sector continues to grow despite a slow economic recovery.

``Those are very good numbers for a couple of reasons,'' said Edward Deak, an economics professor at Fairfeld University who tracks regional job trends. ``Considering the fact that the state lost about 16,000 jobs, for them to be able to pick up jobs is bucking the trend.''

And there is positive spinoff, he said.

``These are high value-added jobs, for the most part. ... They help support jobs in other parts of the state,'' Deak said.

The results are part of the ninth annual economic survey conducted for CURE, whose members include the state's pharmaceutical and biotechnology companies, as well as its two largest research universities, Yale and the University of Connecticut.

The survey showed that the number of bioscience jobs grew by 8 percent, to 17,985. However, job growth in 2004 is expected to be minimal, perhaps another 90 jobs, or one half of 1 percent.

The survey also showed that the amount of laboratory space in Connecticut grew by 6 percent, to 5.6 million square feet. Lab space is expected to grow by another 1 percent in 2004, to about 5.7 million square feet.

Public and private venture investment in 2003 reached $184 million, and the survey reports that the amount of venture investment in 2004 has already exceeded that amount, at $273 million.

``We're starting to see seed deals now again, which is another sign of health,'' said Victor Budnick, president of Connecticut Innovations Inc., the state's quasi-public venture investing arm. ``It means entrepreneurs and scientists are willing to risk their careers for a new idea.''

The only category to decline was spending for clinical studies, which decreased by 4 percent, to $585 million. CURE president Paul Pescatello said the state does not have as much activity in this area as some other states, so the amounts fluctuate as studies are added or concluded.

He and other industry executives said the results were promising and showed the resilience and value of the biosciences to the state. However, they also said the state can't afford to let its support slip.

The General Assembly during its last session made research and development tax credits for tech companies a permanent feature of the state's support, but it also slashed its lab construction fund by $4 million and let languish a bill allowing research on stem cells.

Budnick said the policy results send a mixed message leading to the big Biotechnology Industry Organization conference in San Francisco next week.

``I think it shows there are considerable opportunities for us, but it's going to be up to us in the public and private sector to make the most of those opportunities,'' he said. ``So whether we will be actually able to convert them to employment gains, company growth and wealth creation depends on just how aggressive and tenacious and supportive we are willing to be.''